1.Ohio has banned outsourcing which is a double whammy after the H-1B visa costs have sky rocketed.
http://profit.ndtv.com/news/show/ohios-outsourcing-ban-a-disturbing-trend-nasscom-97822?pfrom=Business
Ohio’s outsourcing ban ‘a disturbing trend’: Nasscom
Press Trust of India, September 13, 2010 (New Delhi)
Ahead of the US visit by a Nasscom delegation this month, its President Som Mittal on Monday said the visa fee hike and Ohio's ban on outsourcing is \"disturbing\" with long term implications.
\"I think this is a disturbing trend. The measures that India is taking would bring to the notice of the US administration that for short term gain, there could be long term implications,\" Mittal said on the sidelines of a CII event in New Delhi.
Additional Secretary in the Commerce Ministry D K Mittal, who was also present, said, \"We are going to talk to the US and convince them that this is not something which they should be doing.\"
However, the developments of the past few weeks were understandable in the wake of the US Congress elections in November. \"We understand why it is happening, elections are ahead and many of these topics are local to the country,\" Mittal said.
The issue could be resolved as Commerce and Industry Minister Anand Sharma is visiting the US next week, Mittal said.
A Nasscom delegation on Monday met Sharma, who is scheduled to attend the US-India Trade Policy Forum meeting on September 21 in Washington.
The Nasscom team would also be in the US in the next 15 days.
While USD 50 billion IT export industry is not much impacted by the Ohio ban, it was disturbed by recent events, which included fee hike on H1B and L category visas for professionals.
These restrictions come amidst fragile recovery in the US economy, which is vital for the Indian IT firms depending on America for 60 per cent of their export business.
2.Recruitment into IT companies have been shifted away from BE's to B.Sc, B.Com and sometimes High School Pass. I gather atleast in TamilNadu IT majors are no longer hiring BE's as they have to be paid a minimum of INR 13500 to start as per Nasscomm and hence they have started hiring the B.Sc, B.com and some cases +2 pass students to cut cost.
I'm finding B.A and B.Sc coming over to Canada representing Indian IT majors on short term projects here.
Looks like the boom for B.E/B.Tech and MBA's are over.
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Sunny Leone a true Canadian DESI now back in India !.
I don't understand this extreme reliance on US for Indian IT jobs. Perhaps I am not knowledgeable about that field.
But considering the Indian population, why can't the country be self sufficient when it comes to developing the IT infrastructure and services. There are so many services that can be automated.
How about networking government offices and departments, making all the services available online, just as we have in Canada. How about government spending on infrastructure, healthcare and education which can be a source of employment and give rise to dependent sectors? How about networking all the government libraries or police stations?
I know it requires a tremendous effort and willingness, but somebody has to start. I do not understand why even the new generation IAS/IPS officers become a part of system rather than becoming pioneers.
The biggest irony I have seen is the crappy websites of IIM/IITs/Universities/Government departments. Those college churns out graduates that dominate the IT field in entire world, but none of those colleges have any online services. Compared to websites of Canadian universities, Indian counterparts suck big time. I do not think any Indian university has an ability to apply online or order transcripts online.
Location: Western Hemisphere
Posted on: 13-09-10 12:48:42
I absolutely agree with Meghal. My college in India boasts of IT programs and such and yet, at its basic, none of the faculty have a standardized email address. To make it worse, these folks have their own gmail and yahoo accounts with flowery names rather than a professional sounding username.
If Maruti and Tata can produce motor vehicles , I am sure the IT industry has people and brain power to become innovative and self-sustaining. For one, I' like to see bank branches connected (as of 2008, at least one of the public sector bank wasn't).
Lack of inclination, dependant mentality and corruption comes to mind.
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Dimple2001
Quote:
Originally posted by meghal
I don't understand this extreme reliance on US for Indian IT jobs.
Not just reliance but it seems they r begging for the business.
While US is trying to solve its own puzzle n generate employment - how can Indian IT expect someone else to feed them?
With such a big consumer power - US corporate will come to India, no need to go begging...
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Mumbai Maazi Ladki ...
Quote:It requires more than effort and willingness - it requires $$ (or rather, Rs.)
Originally posted by meghal
But considering the Indian population, why can't the country be self sufficient when it comes to developing the IT infrastructure and services. There are so many services that can be automated.
How about networking government offices and departments, making all the services available online, just as we have in Canada. How about government spending on infrastructure, healthcare and education which can be a source of employment and give rise to dependent sectors? How about networking all the government libraries or police stations?
I know it requires a tremendous effort and willingness
Who is going to pay for all that infrastructure and public services spend?
The govt. is already running deficit budgets and inflation is already running at 12%.
Also, if both the demand and supply is within the country, there is no competitive advantage.
The reason India is so hungry for offshore work is because of the competitive advantage and the forex.
If that tap is turned off, there isn't going to be enough value to do these things within the country - not for many years at least.
If private sector is the only one generating demand for IT services, it will reduce demand and drive down the investments.
Foreign investment is very important at this time.
I won't say Indian IT can't survive without that, but it is important.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Quote:It requires more than effort and willingness - it requires $$ (or rather, Rs.)
Originally posted by pratickm
I know it requires a tremendous effort and willingness
Who is going to pay for all that infrastructure and public services spend?
The govt. is already running deficit budgets and inflation is already running at 12%
So why not increase the taxes? Why does GOI keeps on increasing the limits of taxable income?
Quote:
If that tap is turned off, there isn't going to be enough value to do these things within the country - not for many years at least.
So what have developed countries achieved by providing online access to its citizens?
Considering the population of India, such activities will last and provide employment for quite a number of people and for a longer period of time
Quote:
Foreign investment is very important at this time.
I won't say Indian IT can't survive without that, but it is important.
How about focusing more on Europe/Australia/Far East?
Quote:So you are advocating increasing the taxes in India to pay for pumping up the decadent IT sector in India?
Originally posted by meghal
So why not increase the taxes? Why does GOI keeps on increasing the limits of taxable income?
Increasing taxes is usually counter-productive to growth.
Ordinary, fixed income folks in India are already reeling under taxation.
Inflation is running rampant at > 12% CPI.
Retail inflation is likely closer to 20%.
And you want them to pay more tax?
There is also a huge tax leak in India - the so-called "black economy" or "parallel economy".
It's only the salaried income earners in India that will bear the brunt of any tax increases.
Quote:We are not there yet.
So what have developed countries achieved by providing online access to its citizens?
I don't see why the govt. should break the back of ordinary people to pump up the IT sector.
In the end, it will simply end up feeding the "middle-men" - the fat cats.
Quote:Sure, it will, but where will the money come from?
Considering the population of India, such activities will last and provide employment for quite a number of people and for a longer period of time
The central (and state) governments are already overstretched in their budgets.
There is high deficit financing (it's always been a problem in India).
I don't see how the govt. can afford to pay for billions of Rs. of public sector spending at this time.
On paper, they can potentially cut all the wastages and inefficiencies of public sector and divert those funds into progressive growth.
But it's easier said than done.
The govt. of Indian is modernizing, although not at the same rate as the private sector.
Almost all central govt. dept. now have computers and all the processing is done on computers.
Many public sector banks offer online banking.
But it is a slow process.
India is not a small agile country/economy like Singapore or Taiwan - it takes time for this beast to turn and flip.
Quote:That focus is there.
How about focusing more on Europe/Australia/Far East?
Indian IT firms get a lot of business from Europe.
TCS, Satyam, Infosys, etc. have large presence in those countries.
Far East is more tricky because we are their competitors.
There is very little competitive advantage for Far Eastern countries to outsource to India.
There is also the language barrier, unlike Europe & Americas.
While India does do outsourcing work for Japanese companies, the reach into other countries are limited for obvious reasons.
Australia - I don't know.
It's an even smaller economy than Canada's and I don't know how much offshoring is prevalent there.
Even if there is, it will be a small component of India's total outsourced work.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
